Sawasdee - May 13, 2019

No relief of US-China trade tension

Market outlook

US stock markets rebounded on Friday after overcompensating for the tariff hike. However, the situation remains gloomy, with no progress and this will pressure the market in this morning (DJIA-F has fallen 200 points.). Supports are 1,640 and 1,634. Resistance is at 1,655-1,660

Market strategy

We recommend gradually buy when the market moves in the range of 1,630-1,640. Pick up our May stock picks: BBL, CHG, GFPT, TRUE and TU. Buy PTTEP, TOP, IRPC, IVL when price signals rebound. Speculate in contractors aided by progress in politics: CK, SEAFCO and STEC. Leasing and IFFs & REITs which will benefit from no rate hike or rate cut; AEONTS, TISCO. Today’s technical picks: CPF and MAJOR.